§ Mr. SarwarTo ask the Secretary of State for Defence what progress has been made with placing a contract for the additional two alternative landing ships logistics. [16268]
§ Mr. IngramI am pleased to announce that, further to the announcement made by my right hon. Friend the Secretary of State for Defence on 26 October last year,Official Report, columns 414–15, the Ministry of Defence has concluded negotiations with BAE Systems Marine and has today placed a contract worth an estimated value of £120 million with the BAE Systems Marine Govan Shipyard on the Clyde to construct two Alternative Landing Ships Logistics. This is in addition to the first two ships in the class which are to be built by Swan Hunter at its Tyneside yard. BAE Systems Marine will build their vessels to Swan's design.
This represents an important enhancement to our Amphibious Capability, as each ALSL has more than twice the carrying capacity of the ships that they will replace. This significantly increases our specialist amphibious lift capacity. The vessels being built by Swan Hunter are due to enter into service in 2004 and 2005. Work at Govan on the further two vessels should commence later this month with a planned in-service date of 2005.
This represents positive news for Clyde shipbuilding and should sustain 600 jobs at the Clyde shipyards and 200 other jobs in the region until the planned Type 45 Destroyer construction commences.